How to protect your no claims bonus

When you're getting a quote for a new car insurance policy, the ‘no claims bonus' is always a key part of the process.

After all, it's an important bargaining point and, depending on how many years' no claims bonus you have, it can represent substantial savings and knock anything from 50% to 75% off the total cost of an annual premium. But how do you protect this valuable asset, and take full advantage of its benefits?

"A no claims bonus is something that is earned, and is a reward for drivers who have not had to make a claim on their insurance for a period of time", says RIAS Managing Director Janet Connor. "It takes 5 years to accumulate the maximum no claims bonus, and can be lost as well as gained. But although drivers are fully aware of the importance of building up and maintaining their no claims bonus, not many are aware of the various ways of protecting or safe-guarding it."

The following is a guide from RIAS, which specialises in providing insurance for the over 50s:

Drivers can sometimes pay a little extra to protect their no claims bonus - however, if two claims are made in quick succession, this protection may be invalidated, and it may be difficult to pay-to-protect again.

Remember, it's a no claims bonus, and not a no fault bonus. Whether or not you are responsible for an accident, if you make any kind of claim and your insurance company cannot claim all their outlay from someone else, you are at risk of losing all or some of your no claims bonus.

Avoid accidents as much as possible: always observe the Highway Code, drive carefully and observe the rules of the road.

Concentrate on your driving and don't take unnecessary risks (ie: driving under the influence of alcohol, driving when excessively tired, undertaking avoidable journeys in adverse weather conditions).

Don't allow yourself to be distracted at the wheel - don't use MP3 players, mobile phones and other gadgets

Make regular checks of your vehicle and make sure it's in good working order - regular servicing also helps

In the event of an accident or damage causing minor repairs, it is advisable to balance the cost of paying for the repair yourself against the cost of losing your no claims bonus